Last time, we explained the procedures and processes for tax audits. Many of you may have heard that even though you were in a refund position at the time of filing your tax return, you received a large amount of additional tax as a result of a tax audit and had to pay it. If you are not satisfied with the results of the tax audit, you have the option of filing an appeal or going to tax court. You may have heard of it, but it seems difficult, and you may be wondering if there is any hope of getting good results. This time, we will explain the procedures and processes for filing an appeal and tax court.

1. Appeal

If you are not satisfied or dissatisfied with the results of the tax audit, you can file an appeal. An appeal must be filed within 3 months from the issuance of the notification of the results of the tax audit (SKP). If you do not agree with the amount of additional tax stated in the SKP, it is possible to file an appeal without paying the full amount, but if the appeal is rejected, there will be a 50% penalty on the unpaid amount of additional tax, so it is safer to pay the entire amount of additional tax in advance to prepare for the worst possible outcome. Upon receiving an objection, the DGT will issue a SPUH (Notice of Objection Findings). After receiving the SPUH, we will make a counterargument against it, and after discussion, it will be closed. After going through this process, the Directorate General of Taxation must make a decision within 12 months.

2. tax court

If you are not satisfied or dissatisfied with the result of your appeal, you can file a lawsuit with the Tax Court. There are many cases in which matters that were not approved even after a tax audit and an objection were successfully filed in court, so if you receive a large amount of additional money in a tax audit, we recommend that you proceed with a plan that takes into account the tax trial. The deadline for filing a lawsuit is within three months of the decision to review the appeal. To file a tax lawsuit, you must pay at least 50% of the amount of tax due as determined by the examination of the appeal, which is different from the above-mentioned appeal, so please be careful. After filing the lawsuit and going through multiple trials, the Tax Court is expected to issue a decision within 12 months. If the judgment requires payment of additional tax, a 100% penalty will be imposed. On the other hand, if there is no longer a need to pay taxes due to a judgment, the overpaid amount will be refunded in full.

Related laws: Undang-Undang Nomor 6 Year 1983第23条2、SE-08/PP/2017、SE-002/PP/2015